Are 401k plans still an efficient way to save for retirement? Yes, I believe they are more relevant than ever. Here’s why.
The world has changed as a result of COVID-19, and many things will never be the same. Your 401k plan needs to evolve to better fit the new relationship you have with your employees. Following are five 401k updates you should consider making to your plan in response to COVID-19.
If you offer a high-deductible health plan (HDHP) to your employees, all of your executives should max out their contributions to their health savings accounts (HSAs) every year. Read on to learn why this is becoming one of the most important executive benefits.
After working with hundreds of 401k plans for more than 30 years, I have consistently encountered a relatively small number of 401k fixes that can make a big difference in almost every 401k plan. None will cost you much money and some may even save you money. Check out this list to see how many of these 401k fixes you can implement in your plan.
Many investors believe that gold can be an effective hedge against inflation and falling stock and bond markets. Should you add a gold fund to your 401k plan? It’s not an easy decision, but here are issues to consider.
The recent CARES Act made it easier for 401k plan participants to withdraw money from their accounts. In order to allow what are being called COVID-19 withdrawals from your 401k plan, you would need to amend it. However, I don’t believe you should adopt provisions allowing your 401k plan to permit COVID-19 withdrawals.
Weak equity markets have one silver lining for 401k plan participants with large account balances: a Roth in-plan conversion.
Volatile markets have returned with a vengeance. The Dow Jones Industrial Average has fluctuated by thousands of points on recent trading days. During these times your 401k plan participants can become very nervous, and understandably so. Plan sponsors and their investment advisers can help calm participants during these volatile markets by sharing the following.
Recently I shared a post on retirement readiness that focused on the employer’s responsibilities in helping employees build a retirement plan balance that is sufficient for them to retire without a reduction in standard of living. But employees won’t succeed in achieving their retirement dreams unless they do their part as well.
The attributes listed in this piece have become associated with an employer’s responsibilities in helping participants achieve retirement readiness.